Beja Jr, Edsel (2010): Balance of Payments-consistent unreported flows.
Download (299Kb) | Preview
The paper develops a Balance of Payments (BOP)-consistent procedure for estimating unreported flows. Using data between 1990 and 2007, total unreported flows of selected Asian countries is estimated at $4.7 trillion, or more than 80% of the countries’ 2007 total gross domestic product. Results reveal that unreported flows increase with reported and accumulated unreported flows. Financial depth and governance of the real sector decrease unreported flows, whereas economic growth and weakness in the governance of reported flows increase unreported flows. Results also reveal that unbalanced financial and real sector development contributes to the unreported flows. Lastly, the paper argues that there is an opportunity to reverse the situation through a judicious application of capital flow and trade flow management techniques and development and improvement in capacity, including governance, to internalize resources and converting them into desired outcomes.
|Item Type:||MPRA Paper|
|Original Title:||Balance of Payments-consistent unreported flows|
|Keywords:||Balance of Payments; unreported flows; Asia|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development
E - Macroeconomics and Monetary Economics > E0 - General
O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East
F - International Economics > F2 - International Factor Movements and International Business
F - International Economics > F3 - International Finance
F - International Economics > F1 - Trade
C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology; Computer Programs
B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches
|Depositing User:||Edsel Beja, Jr.|
|Date Deposited:||29. Mar 2010 07:25|
|Last Modified:||21. Feb 2013 10:52|
Aizenman, Joshua (2008). On the Hidden Links between Trade and Financial Opening, Journal of International Money and Finance, 27(3): 372-386.
Alesina, Alberto and Guido Tabellini (1989). External Debt, Capital Flight and Political Risk, Journal of International Economics, 27(3-4): 199-220.
Amsden, Alice H. (1989). Asia’s Next Giant: South Korea and Late Industrialization. New York, NY: Oxford University Press.
Beja, Edsel L. (2006). Was Capital Fleeing Southeast Asia: Estimates from Indonesia, Malaysia, the Philippines, and Thailand, Asia Pacific Business Review, 12(3): 261-283.
Beja, Edsel L. (2009). Capital Flight and Economic Performance of the Philippines, in James B. Tobin and Lawrence R. Parker (eds.), Joint Ventures, Mergers and Acquisitions, and Capital Flow. New York, NY: Nova Publishers: 239-254.
Berlin, Isaiah (1969). Two Concepts of Liberty, in Isaiah Berlin (ed.), Four Essays on Liberty. Oxford, UK: Oxford University Press: 118-172.
Bhagwati, Jagdish N. (1974). Illegal Transactions in International Trade. Amsterdam: North-Holland.
Bhattacharya, Rina (1999). Capital Flight under Uncertainty about Domestic Taxation and Trade Liberalization, Journal of Development Economics, 59(2): 365-387.
Boyce, James K. (1992). The Revolving Door? External Debt and Capital Flight: Philippine Case Study, World Development 20(3): 335-349.
Boyce, James K. (1993). The Political Economy of Growth and Impoverishment in the Marcos Era. Quezon City, Philippines: Ateneo de Manila Press.
Boyce, James K. and Leonce Ndikumana (2001). Is Africa a Net Debtor? New Estimates of Capital Flight from Severely Indebted Sub-Saharan African Countries, 1970-98, Journal of Development Studies, 38(2), 27-56.
Chang, Ha-Joon (2002). Kicking Away the Ladder: Development Strategy in Historical Perspective. London, UK: Anthem Press.
Chang, Kevin P., Stijn Claessens and Robert E. Cumby (1997). Conceptual and Methodological Issues in the Measurement of Capital Flight, International Journal of Financial Economics, 2(2): 101-11.
Collier, Paul, Anke Hoeffler and Catherine Pattillo (2001). Flight Capital as a Portfolio Choice, World Bank Economic Review, 15(1): 55-80.
Collier, Paul, Anke Hoeffler and Catherine Pattillo (2003). Aid and Capital Flight, paper presented at the Conference on Sharing Global Prosperity, UNU/WIDER, 6-7 September.
Cuddington, John T. (1986). Capital Flight: Estimates, Issues and Explanation, Princeton Studies in International Finance, No. 58. Princeton, New Jersey: Princeton University.
Cumby, Robert and Richard Levich (1987). On the Definition and Magnitude of Recent Capital Flight, in Donald R. Lessard and John Williamson (eds.), Capital Flight and the Third World Debt. Washington, DC: Institute of International Economics: 27-67.
de Boyrie, Maria, Simon J. Pak and John S. Zdanowicz (2005). Estimating the Magnitude of Capital Flight due to Abnormal Pricing in International Trade: The Russia-USA Case, Accounting Forum, 29(3): 249-270.
Deppler, Michael and Martin Williamson (1987). Capital Flight: Concepts, Measurement, and Issues,” in International Monetary Fund (ed.), Staff Studies for the World Economic Outlook. Washington, DC: International Monetary Fund: 39-58.
Dooley, Michael P. (1986). Country Specific Risk Premiums, Capital Flight, and Net Investment Income Payments in Selected Developing Countries, Discussion Mimeograph No. 17. International Monetary Fund.
Dooley, Michael P. (1988). Capital Flight: A Response to Differential Financial Risks, IMF Staff Papers, 35(3), 422–436.
Eggerstedt, Susan, Rebecca Hall and Sweder van Wijnbergen (1995). Measuring Capital Flight: A Case Study of Mexico, World Development, 23(2): 211-232.
Epstein, Gerald A. (2005). Capital Flight and Capital Controls in Developing Countries. Northampton, MA: Edward Elgar.
Erbe, Susanne (1985). The Flight of Capital from Developing Countries, Intereconomics, 20(4): 286-275. Frankel, Jeffrey A. and David Romer (1999). Does Trade Cause Growth?, American Economic Review, 89(3): 379-399.
Gordon, David B. and Ross Levine (1989). The ‘Problem’ of Capital Flight – A Cautionary Note, The World Economy, 12(2): 237-252.
Gulati, Sanil (1987). A Note on Trade Misinvoicing, in Donald R. Lessard and John Williamson (eds.), Capital Flight and the Third World Debt. Washington, DC: Institute of International Economics: 68-79.
Haggard, Stephan (1990). Pathways from the Periphery: The Politics of Growth in the Newly Industrializing Countries. Ithaca, NY: Cornell University Press.
Hermes, Niels and Robert Lensink (2001). Capital Flight and the Uncertainty of Government Policies, Economic Letters, 71(3): 377-381.
Johnson, Chalmers A. (1982). The MITI and the Japanese Miracle: The Growth of Industrial Policy, 1927-1975. Stanford, CA: Stanford University Press.
Kaminsky, Graciela L. and Carmen M. Reinhart (1999). The Twin Crises: The Causes of Banking and Balance-of-Payments Problems, American Economic Review, 89(3): 473-500.
Kant, Chander (1996). Foreign Direct Investments and Capital Flight, Princeton Studies on International Finance No. 80. Princeton, New Jersey: Princeton University.
Kant, Chander (2002). What is Capital Flight, The World Economy, 25(3): 341-358.
King, Robert G. and Ross Levine (1993). Finance and Growth: Schumpeter Might be Right, Quarterly Journal of Economics, 108(3): 717-737.
Lensink, Robert, Niels Hermes and Victor Murinde (1998). The Effect of Financial Liberalization on Capital Flight in African Economies, World Development, 26(7): 349-1368.
Lensink, Robert, Niels Hermes and Victor Murinde (2000). Capital Flight and Political Risk,” Journal of International Money and Finance, 19(1): 73-92.
Lessard, Donald R. and John Williamson (1987). Capital Flight and the Third World Debt. Washington, DC: Institute of International Economics.
Lopez, Julio (1998). External Financial Fragility and Capital Flight in Mexico, International Review of Applied Economics, 12(2): 257-270.
Morgan Guaranty Trust Company (1986). “LDC Capital Flight,” World Financial Markets, 2(March): 13-15.
Ndikumana, Leonce and James K. Boyce (2003). Public Debts and Private Assets: Explaining Capital Flight from Sub-Saharan African Countries. World Development, 31(1): 107-130.
Pak, Simon J., Stelios H. Zanakis and John S. Zdanowicz (2003). Detecting abnormal pricing in international trade: The Greece-USA case, Interfaces, 33(2): 54-64.
Pastor, Manuel (1990). Capital Flight and the Latin American Debt Crisis. Washington DC: Economic Policy Institute.
Prasad, Eswar S., Raghuram G. Rajan and Arvind Subramanian (2007). Foreign Capital and Economic Growth, Brooking Papers on Economic Activity, 2007(1): 153-209.
Rodriguez, Francisco and Dani Rodrik (2001). Trade Policy and Economic Growth: A Skeptic’s Guide to the Cross-National Evidence, in Ben S. Bernanke and Kenneth S. Rogoff (eds.), NBER Macroeconomics Annual, Volume 15. Cambridge, MA: National Bureau of Economic Research: 261-338.
Sen, Amartya K. (1999). Development as Freedom. New York, NY: Anchor Books.
Vos, Rob (1992). Private Foreign Assets Accumulation, Not Just Capital Flight: Evidence from the Philippines, Journal of Development Studies, 28(3): 500-537.
Vos, Rob and Josef Yap (1996). The Philippine Economy: East Asia’s Stray Cat?. New York, NY: St. Martins.
Wade, Robert (1990). Governing the Market: Economic Theory and the Role of the Government in East Asian Industrialization. Princeton, NJ: Princeton University Press.
Weiss, Linda and John M. Hobson (1995). States and Economic Development: A Comparative Historical Analysis. Cambridge, UK: Cambridge University Press.
World Bank (1985). World Development Report. Washington, DC: World Bank.
World Bank (2006). Global Economic Prospects. Washington, DC: World Bank.
Available Versions of this Item
- Balance of Payments-consistent unreported flows. (deposited 29. Mar 2010 07:25) [Currently Displayed]